Thursday, May 17, 2012

Stock Market Tailspin

Stocks continue their losses, down for the 11th time in 12 sessions. The FOX Index, which reached its all-time high of +1,935 just 16 days ago, has dropped to a modest +761 (see chart), closer to a negative “unhealthy” than it is to its May 1 peak (the Index tracks the distance from 15,800, a “healthy” market total of a Dow of 12,000, an S&P 500 of 1,300, and a NASDAQ of 2,500). The S&P 500, at 1,304, is just 4 points from sinking below its “healthy” minimum.

The market's problems are Greece, related bank problems in Spain, Italy, and Portugal, JP Morgan’s $3 billion in trading losses, and other economic problems at home. But Facebook’s initial public stock offering (IPO) tomorrow could set off a welcome market buying spree.

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About Me

Former Hawaii State House Republican Leader, State and City economic development executive, and U.S. Foreign Service Officer stationed in East Asia and Washington D.C. Holds Ph.D. in Public Affairs (Princeton). This blog has recorded over 75,000 views.